LC030: Finding a Startup Idea

launchpeer - July 6, 2018 - 0 comments

Today’s question:

Today’s question comes from Roy. I’m tossing a few ideas around and researching what a good new business or industry would be to go into. Do you have any recommendations on which industries are good to get into as a first-time founder, or any that you would recommend against?

Jake’s answer:

If you are industry or problem agnostic – meaning you don’t care what type of problem you are trying to solve or which industry you solve it in – then it can be difficult to pin down the best idea to pursue for first startup.

Looking at Roy’s question, I lean a bit more toward talking about which industries not to get into rather than the ones you should get into. The list of industries to get into is quite long and can be trendy rather than what’s best for you specifically.

Industries to Avoid

Technical industries you have no experience in. For example, I wouldn’t start a healthcare startup because I don’t have any experience in it and it’s incredibly complex.

Heavily regulated industries. Things such as finance, healthcare, telecomm, pharma, etc, are difficult to get into because there are a lot of hoops to jump through upfront. This makes it difficult for people to get into if they don’t have experience in it. Even if you have a great product, regulations can make it far too challenging to get into the market.

Physical products or manufacturing. If you are a first-time founder, I’d recommend staying away from any type of physical product. Sticking to digital products such as apps, newsletters, etc, is much easier to get started with building your first product than a physical product. This can help you get your feet wet as an entrepreneur without the complexity.

Stick with what you Know

At the end of the day, it’s important for first-time founders to stick with what they know. Staying in your wheelhouse can help set you up for success as someone who’s an inexperienced entrepreneur. It also helps you know if there’s truly a problem there worth solving.

If you don’t have experience in an industry, it’s hard to know what the problems are or where to go for that kind of information. The work that you’re going to be doing when you startup a business is the work you’re going to be doing everyday so make sure it’s something you want to be doing and will enjoy.

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